A 40-Gb/s packaging solution that uses low-cost wire-bonded plastic ball grid array (WB-PBGA) technology is presented. Since such a high speed was beyond the reach of conventional package designs, a new design methodology was proposed-discontinuity cancellation in both signal-current and return-current paths. The 3-D structures of bonding wires, vias, solder ball pads, and power distribution networks were optimized for the discontinuity cancellation. Two versions of four-layer WB-PBGA packages were designed; one according to the proposed methodology and the other conventionally. The proposed design methodology was verified with full-wave simulation, passive bandwidth measurement, time domain reflectometry (TDR), eye diagram measurement, and jitter analysis.